AMERICAN SHIPPING

New Zealand Herald, Volume LXXIII, Issue 22412, 7 May 1936, Page 12

AMERICAN SHIPPING

NEW SUBSIDY BILL INTRODUCTION IN SENATE WASHINGTON. May 5 In the Senate- yesterday Mr, J. F. Guffey (Democrat —Pennsylvania) introduced a compromise Ship Subsidy Dill intended to break the existing deadlock which threatens to prevent legislative action being taken this session. The proposal offered as a substitute for the bill passed by the House of Representatives last summer would set up a Maritime Commission to supervise the American merchant marine and to terminate the existing mail contracts on March 31, 1937. By that time plans would be read.v whereby Government aid would be extended to shipping companies in the form of differential subsidies to enable them to build new vessels in American yards, and operating subsidies to enable them to operate in foreign trfide in competition with foreign lines. Under Mr. Guffey's bill tho subsidy for construction would be limited to •33 1-3 per cent of the cost of construction, except that tho Government could provide additional funds for national defence features which tho Commission might order to be incorporated in any vessel.

The operating subsidy, according to the new bill, must not exceed 40 per cent of the operating expenses of any voyage, except for a further 10 per cent which could be granted to compensate for the effects of a subsidy to a foreign competitor given by a foreign Government.